Inter company debt!

i am company director at two companies company debt

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Good Evening, I am a director of two limited companies. One of the companies, I am the only director.  The other company I am a minority shareholder . I have invoiced the company where I am the minority shareholder for goods that have been supplied by the company where I am sole director of  . The issue that I have is that after  12  months  I am still owed the money for those invoices .I have asked  numerous times for the money owed ,but I am aware that money has been tight but the company has still managed  to pay other debtors  and invest money in new equipment . I have access to the bank account as a signatory on the account ,I now want my money owed  could  I  transfer the money from the  companys  bank account  ? Am I  within my rights to do this  as I am the oldest debt by far ?

I really would appreciate any advice you could give.

Replies (9)

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By David Ex
15th Apr 2024 19:52

Legal questions are best put to legal advisors, lawyers if you will. The downside is that lawyers need to be paid for giving advice unlike accountants who work for nothing.

Thanks (4)
By FactChecker
15th Apr 2024 20:05

"Am I within my rights to do this?"
Almost certainly not - but a lawyer, after perusing all the documentation, could give you an answer based on your specific case.

In practice, even if you 'got away' with doing that, what would be the reaction of your co-directors (and majority shareholders)?
If you haven't asked them, then I suspect you know the answer (else you wouldn't be asking here) ... but they're the only ones with whom it is even possible to end up with a 'solution' where you haven't spent all that money (that is tight) on lawyers!

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By Paul Crowley
15th Apr 2024 20:37

The company not paying you and is clearly preferring other creditors. They are definitely not your mates. If they left you a loop hole to get paid, then they deserve what they get.
Argue about it later is an option. So is going to court, or an insolvency request. I know what I would consider as the best solution for me, but as a regulated accountant, I could not do it.

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David Winch
By David Winch
15th Apr 2024 20:48

You should get legal advice from a solicitor with suitable experience. Most definitely do not make a payment to your company from the other company without first obtaining either (1) the express agreement of the other directors or (2) obtaining legal advice.

Thanks (7)
By Tax Dragon
16th Apr 2024 06:11

How do you deal with other nonpaying debtors?

Thanks (3)
By bernard michael
16th Apr 2024 09:15

Is your signature needed on cheques being paid to other creditors.??
If yes refuse to sign them. If not take legal advice and do not write cheques to your creditor company as that could be deemed to be preference.

Out of curiosity how much is involved ??

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Replying to bernard michael:
By danielb
16th Apr 2024 10:18

Thanks for all the responses the amount owed is 120 k .The invoices go back well over a year. I have not taken a salary in 4 years. I am a minority share holder ,the other directors do not appear bothered about my outstanding debt. I have asked for payments or even to set up a payment plan, this is simply unreasonable and unfair .However this seems to be falling on deaf ears which is taking its toll on my other business. Payments to suppliers are made via bacs payment through on line banking.
Thank you once again

Thanks (1)
By bernard michael
16th Apr 2024 10:30

If there is no dispute about the debt outstanding serve an immediate Statutory Demand and watch the s..t hit the fan

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Replying to bernard michael:
Lisa Thomas
By Lisa Thomas - Insolvency Practitioner
16th Apr 2024 11:59

My thoughts exactly, assuming the debt has been acknowledged (filed company accounts perhaps?) and there is no risk of a challenge.

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